The Three Things Every Owner Must Know To Keep A Tenant Long Term
The Three Things Every Owner Must Know To Keep A Tenant Long Term
1. No Rent Increases- Simply put, rent increases run good tenants away. If you have a good tenant who pays the rent on time, you should almost never raise the rent. It makes them feel unappreciated and causes them to explore the option of buying a new home or finding another place to rent. The best time to increase the rent is in between tenants before your property is relisted for rent. As an investor of a long term rental property, the goal should always be to find and keep long term tenants. Resist the urge to raise the rent on a good tenant.
2. Have a good Repair Plan- There’s nothing that upsets a tenant more than a home that’s in need of constant repairs. While repairs are inevitable, how quickly they are addressed is critical to keeping good tenants happy. Not all repairs are equal and some need to be addressed sooner than others. A few examples of that would be like when the a/c stops working in the summer or the refrigerator stops cooling as opposed to a leaking sink or broken garbage disposal. If an owner does not have a proper maintenance plan in place with the property manager, a lot of time is spent on getting estimates to do the job. Often the owner is trying to get the best price, all while the tenant is being inconvenienced by contractors coming and going and still no working a/c. The main issue here is not having a proper maintenance plan in place. All owners should either have a renewable one year home warranty on their home or a maintenance program of some kind. This is one area not to pinch pennies on. The plan of call a handyman as needed usually ends up being counterproductive. Too many repairs and no good plan to address them, all lead to a bad tenant experience and causes them to eventually want to move. Always have a good repair plan in place.
3. More Amenities Please- When an owner decides to rent their home out, they are essentially going in to business. All businesses require an initial investment. If the goal is to find a good long term tenant, they should consider making upgrades throughout the home to make it more appealing and to get a better ROI (Return on Investment). Moreover, when a home is upgraded, it also reduces the number of future repairs that is likely to occur while tenant occupied. A good example would be adding a deck or fence to a home that did not have one or both. Upgrading your kitchens and bathrooms will not only attract prospects, but make them want to stay longer. Resist the idea of just moving out of your home, sprucing it up a little, and then having it listed for rent with outdated or mixed match appliances, older systems, and very little amenities. The goal is tenant retention. Invest in your home and add more amenities. The tenants will not only stay longer, they will treat it as though they own it and that’s what you want. More amenities please.